A tale of three indices
The NSE has three financial indices listed that provides a rare window into how different parts of the financial sector has performed over the years.
| Index | Inception Date |
|---|---|
| CNX PSU BANK | 2004-01-01 |
| CNX FINANCE | 2004-01-01 |
| CNX BANK | 2000-01-01 |
Return profiles
Returns in the financial sector comes with some very fat tails. If one could consult an oracle on the timing of these big swings, there’s a pretty packet for them.
Cumulative returns
If you had stayed invested since 2004-01-01, here’s how much you would have made:
| Index | Cumulative returns |
|---|---|
| CNX FINANCE | 495% |
| CNX BANK | 455% |
| CNX PSU BANK | 265% |
Note: These are cumulative numbers, not annualized returns
If you notice, PSU banks are yet to recover from the draw-down that occurred August-2013.
Investors have been on a PSB binge ever since the Modi effect took shape. Will this time be different for investors?
[stockquote]PSUBNKBEES[/stockquote] [stockquote]BANKBEES[/stockquote]